ALPHA FLEXIBLE CO-INVEST L.P.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 1972, Elif is Turkey’s largest personal and home care flexibles manufacturer focusing on packaging for diapers/feminine care, tissues/wet wipes and detergents. The Company holds a strong market position in diaper/femcare flexibles in the DACH and CEE regions. The Company has a world class production plant in Turkey, which mostly covers the European market, and one in Egypt, that provides a low-cost production base covering regional demand (i.e. Egypt and MENA) and is also used as a contingency plant for Turkey. The Company is a leader in terms of sustainability with numerous sustainability awards, operations designed to print on biodegradable plastic and the installation of a tri-generation plant which resulted in an improved electricity usage and GHG emission reduction.
What is our funding objective?
FMO invests in Elif together with Turkven, a leading private equity firm active in Turkey since 2000. The funding aims at supporting the existing management to benefit from its strong position in the MENA region, expanding towards different product categories and improving its operational efficiency.
Why do we fund this investment?
The investment is a co-investment with a long-lasting relationship of FMO (first fund raised in 2002), bridging a financing gap in Turkey and Egypt, two major focus country of FMO’s “Circle around Europe” strategy, identified as a high growth area and transit country for migrants. The transaction is expected to maintain 1,400 current jobs and create additional jobs.
What is the Environmental and Social categorization rationale?
Category B+ (medium) is confirmed as the investment is expected to have limited environmental and social impacts, which are expected to be largely site-specific, and none is expected to be significant. Elif is still considered as B+ due to the size of the company. IFC Performance Standards 1, 2, 3 and 4 are applicable to this investment. E&S risks and impacts will be managed by Elif’s existing ESMS and the mitigation measures proposed in the ESAP.
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/11/2018
- End date
- 6/16/2022
- Total FMO financing
- n.a.
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+